Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FUND NAV NET CHG YTD % RET MinT p 15.32 -0.05 2.5 TmRE r 18.77 0.05 5.4 PFIN 27.81 0.19 7.9 TopLA 45.21 0.28 9.0

FUND\ NAV\ NET CHG\ YTD % RET\ MinT p 15.32 -0.05 2.5\ TmRE r 18.77 0.05 5.4\ PFIN 27.81 0.19 7.9\ TopLA 45.21 0.28 9.0\ DARNELL: After some research, Ive narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 fees and fund performance?\ ELEANOR: Generally, funds that charge 12b-1 fees, such as MinT p, outperform funds that do not charge these fees.\ DARNELL: What about front-end load fees? For example, suppose TopLA has a front-end load fee of 6%, when do I pay this fee?\ ELEANOR: If you purchase 100 shares of this fund at the NAV, you will pay a commission of \ $\ , but when you sell these shares you will pay\ $\ in front-end fees.\ DARNELL: It sounds like these fees could start to add up. Whats the most I can expect to pay in fees?\ ELEANOR: If a fund charges a 2% front-end load and a 3.5% 12b1 fee, then it can charge a maximum of only\ % in back-end load charges without violating the cap.\ DARNELL: Thanks! This was really helpful. So it sounds like youd recommend looking for funds whenever possible.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Everything Improve Your Credit Book

Authors: Justin Pritchard

1st Edition

1598691554, 978-1598691559

More Books

Students also viewed these Finance questions

Question

What does the start( ) method defined by Thread do?

Answered: 1 week ago

Question

2. What are the different types of networks?

Answered: 1 week ago